Money Back Insurance
In the money back plan periodic payouts are given to the insured that may lead to wealth creation and can be used for meeting various financial commitments. It is a combination of both insurance and investment. The insured person gets a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. In case of sudden death within the policy term, the nominee would receive the full sum assured and bonus (if any).
The investment in life insurance provides exemptions and deductions under the Income Tax Act 1961 (Act). The insured can avail deduction benefits under 80C. However the life insurance policy should be evaluated on the basis of protection benefits rather than tax exemption benefits.